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Ansoff's Matrix for Business Growth Strategies

The document discusses Ansoff's Matrix, which is a framework for exploring strategic directions for growth. It identifies four strategies: market penetration, market development, product development, and diversification. The matrix helps companies analyze growth opportunities and risks when considering different strategic directions.

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90 views1 page

Ansoff's Matrix for Business Growth Strategies

The document discusses Ansoff's Matrix, which is a framework for exploring strategic directions for growth. It identifies four strategies: market penetration, market development, product development, and diversification. The matrix helps companies analyze growth opportunities and risks when considering different strategic directions.

Uploaded by

n.ravicena
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

ANSOFF’S MATRIX

Management Models

>> INTRODUCTION >> THE MODEL

The matrix allows marketers to consider ways to grow the business via existing and/or
new products, in existing and/or new markets – there are four possible product/market
combinations. This matrix helps companies decide what course of action should be taken
given current performance. The matrix consists of four strategies: PRODUCTS
»» Market penetration: Existing products are marketed to existing customers. This means
increasing revenue by, for example, promoting the product or repositioning the brand. EXISTING NEW
The product is not altered and we do not seek new customers.
»» Market development: An existing product range is marketed in a new market. The
product remains the same but is marketed to a new audience.
»» Product development: The business aims to introduce new products into existing
markets. This strategy may require the development of new competencies and requires MARKET PRODUCT

EXISTING
the business to develop modified products which can appeal to existing markets.
»» Diversification: The business branches out into new markets and introduces new
PENETRATION DEVELOPMENT
products into these markets. This strategy carries more risk as the business is moving Existing product/ New product/
into markets in which it may have little or no experience. To adopt a diversification existing market existing market
strategy a business needs to have a clear idea about what it expects to gain and an
honest assessment of the risks.

MARKETS
>> HOW CAN THIS HELP ME?

The matrix is a framework to explore directions for strategic growth. It is the most
commonly used model for analysing the possible strategic direction that a business
should take. It identifies and analyses different growth opportunities and encourages
planners to consider both unexpected returns and risks. MARKET
DEVELOPMENT DIVERSIFICATION

NEW
>> ADDITIONAL RESOURCES
Existing product/ New product/
Corporate strategy: an analytical approach to business policy for growth and new market new market
expansion, H Igor Ansoff
New York NY: McGraw-Hill, 1965
Igor Ansoff: father of corporate strategy (CMI Management Thinker 052)
Choosing a growth strategy (CMI Management Checklist 261)
Website: www.ansoffmatrix.com

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